Federal Reserve officials are waiting for upcoming economic data, including a key inflation report, before deciding their next monetary policy move. The federal funds rate is currently 3.63%, while inflation was reported at 3.4% year over year in July, above the Fed’s 2% target. Market pricing puts the probability of a rate hike at 45.5% for the September meeting, down from 46% the previous day but up from 31% a week earlier. The odds rise to 58.5% for the October meeting, indicating stronger expectations for policy tightening later if inflation does not cool sufficiently. Fed Chair Jerome H. Powell and the Federal Open Market Committee (FOMC), the Fed’s monetary policy body, will assess the incoming data. A reacceleration in inflation could support a September hike, while cooling inflation or economic weakness could reduce the likelihood of an immediate move. FOMC statements and speeches by Fed officials will also be watched for clues ahead of the next meeting.